Three Lawmakers Ask the Department of Justice to Investigate Venu Sports
One day after Fubo’s antitrust lawsuit against Disney, Warner Bros. Discovery, and Fox over the creation of Venu Sports kicked off in Manhattan, the Department of Justice (DOJ) is now being asked to investigate the joint venture.
Senators Elizabeth Warren and Bernie Sanders, along with Representative Joaquin Castro have sent a letter to the DOJ asking the department to look into the antitrust concerns surrounding Venu Sports.
“We write to express serious concerns regarding the proposed joint venture (JV) between FOX, Warner Bros. Discovery, and Disney subsidiary ESPN, named Venu Sports (Venu). This massive new sports streaming company would be poised to control more than 80% of nationally broadcast sports and more than half of all national sports content, putting it in a position to exercise monopoly power over televised sports,” the letter began.
“The market power of its three giant parent companies would enable it to discriminate against competitors and increase prices for consumers.”
Concerns About Carriage Negotiations
In their letter, the legislatures noted that consolidation has become increasingly common in television to the detriment of consumers.
Photo: Venu
They say Venu’s description as a “joint venture” should not exempt it from scrutiny.
“Using its extensive control of sports licensing rights, Fox, Disney, and Warner Bros. would be able to exert joint control over live sports from distribution through broadcast,” the letter continues.
Beyond Venu Sports’s seeming stranglehold on sports streaming, there are also concerns about how the joint venture would affect carriage negotiations going forward.
Photo: Disney
“If this JV is permitted to proceed, competitors would be forced to negotiate with Fox, Disney, and Warner Bros. for access to over half of the major sporting licensing rights while simultaneously competing against these companies to offer the best product to broadcast or stream these programs.”
Venu Will Launch This Fall
Set to launch this fall, Venu Sports will give sports fans access to Disney-owned ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, and the ABC broadcast network. ESPN+ will also be included.
Disney/Fox/Comcast/ also Ringer illustration
Warner Bros. Discovery, meanwhile, will contribute to TNT, TBS, and TruTV, while Fox will pitch in FS1, FS2, and the Big Ten Network.
The new streaming service will cost customers $42.99 a month when it launches.
Venu. Photo: Venu
You can read the full letter sent by the lawmakers over at The Athletic.
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